Guiding You Through Your Important Legal Needs

Is A Mortgage Loan Modification Right For You?

A home loan modification, otherwise known as a mortgage loan modification, is a special instance where a lender agrees to modify your loan in an effort to allow you to remain in possession of your home and avoid foreclosure. You may want to consider a mortgage loan modification if you are experiencing a long-term income reduction, if you have increased expenses, or if you otherwise find yourself unable to pay mortgage dues.

The court offers its own modification program. The court supervises the payments and the enforcement of the modification program. Additionally, we can help you outside of the court’s program. You can count on our firm’s experienced attorneys to provide you with the knowledge you need to negotiate and close on intelligent loan modifications.

How Do Mortgage Loan Modifications Work?

A mortgage modification can do one or several things to assist a homeowner, depending on the circumstances. For instance, a mortgage modification may lower your interest rate to make your monthly payments more affordable. As a result, a lower interest rate may help you pay off your mortgage quicker and build equity at a faster rate.

Also, if you find yourself facing daunting arrearages, due to unemployment or a general inability to afford your regular mortgage payments for a period of time, it is possible that a mortgage modification may help you by placing those payment arrears to the end of a mortgage balance. Another possibility to assist with paying off mortgage arrears is a modification that extends a person’s loan repayment schedule. For instance, modifying a 30-year mortgage to a 40-year mortgage may make a monthly mortgage payment affordable again and bring your mortgage current.

Another possibility with mortgage modifications includes a reduction in the principal mortgage balance so that you are no longer upside down on your home. Adjusting your mortgage balance to match the value of your home can be critical to saving your house in the long term, as well as the short term.

There are several things you should make yourself aware of if you are thinking about a mortgage loan modification. It is important to have a tight grasp on your financial situation. Know your current income and expenses and have them ready in a spreadsheet for easy reading. It is a good idea to get a three-month average so that you have a better idea of how those expenses might fluctuate. Any lender who is going to work with you on a mortgage loan modification will ask detailed questions about your finances and will want you to submit a detailed financial statement. Of course, we can help you through this process.

There are also several documents that you will need, which typically include property tax information, personal income tax returns, recent mortgage statements, pay stubs, bank statements and/or proof of ownership. Additionally, a hardship letter is typically required, which is usually not more than two pages, in which you will communicate why you have not been able to carry on with the usual payments and why you need a loan modification.

Contact Us To Learn More

We have provided you with some of the most important information about mortgage loan modifications, but there is so much more that you will need to know before you move forward. This is a big step in a person’s life and those who choose to take it are commended for their self-awareness and ability to do what is right to save their home. If you have more questions or would like to move forward with a mortgage loan modification, please call the Pennsylvania mortgage loan modification lawyers at the Thompson Law Group, P.C., in Pittsburgh today for a free consultation at 814-451-1125. Our attorneys have helped numerous individuals achieve a mortgage modification, and we may be able to help you.